The ongoing saga between Northrop Grumman/EADS, Boeing, the Air Force, Congress, and the Government Accountability Office (GAO) continues to languish on in the face of an aging tanker fleet. Northrop Grumman/EADS formally won the contract earlier this year -- the $35B contract would have given the Air Force 179 Airbus A330-based KC-45 aircraft to replace 531 KC-135 tankers.

It now appears that Boeing isn't quite satisfied with just having the competition reopened -- according to the Wall Street Journal, it now wants more time to design a suitable aircraft to meet the Air Force's needs or it is threatening to walk away from the competition altogether. Boeing now wants an additional six months to submit a proper bid that the Air Force would be willing to accept.

"I think the option we would have if we were not given the six months, there is a really high likelihood that we would no-bid the program," said Boeing defense unit head Jim Albaugh.

The Defense Department is already considering giving both Northrop Grumman/EADS and Boeing two additional months to submit new bids for the competition according to close sources, but Boeing's Albaugh said that is not enough. "This is an airplane that's going to be in the inventory 40 years. What we're asking for is an additional four months to have a meaningful competition."

For Boeing, the request for more time and the threat of a "no-bid" is somewhat of a payback to Northrop Grumman/EADS which performed a similar feat back in 2007. The maneuvering by Northrop Grumman/EADS forced the Air Force to make some changes to the requirements for the competition that put Boeing's entry at a disadvantage.

Boeing's current proposal is based around a 767-200 airframe -- it is simply too small and doesn't meet the fuel capacity requirements of the Air Force. Albaugh acknowledges that without the extra time to bid a larger version of the 767-200, it will lose the contract.